Post on 16-Jul-2015
NATURE OF BUSINESS:
This is the partnership business. We will provide services to the people. There is no other person or company to provide such refreshment facilities to the people of Multan and Southern Punjab.
VISION:“To establish a market that would promote technical activities in the public and lead that market with our long term strategies”
MISSION:
“Our mission is to make accessible various games to the
customers of various ages groups, in a sociable environment,
even in the smaller cities, by using latest technology, so as to
ensure a stable growth of our business, that would ensure that
the company’s philosophy and core competencies are aligned
with our vision and eventually, our firm projecting a positive
image, not only for its own employees, but for our city.
OBJECTIVES
LONG TERM OBJECTIVES:•To generate the loyal customer ship.
•To create a positive Image and good will of business
•Encourage the investors to invest in our similar future projects.
•To expand business, by increasing the Product line.
SHORT TERM OBJECTIVES:
•To cover the short term expenses
•To reduce the cost, by critically analyzing the operations of the business
•To provide friendly environment to customers
•To fulfill the need of customers from various classes of the society
COMPETITIVE ADVANTAGE:
We are going to provide a completely friendly environment to
our customers
•We are going to provide different suitable packages for everyone.
•The location is very attractive, so as to facilitate each segment of our target market.
•The projected cash flows support our idea of expansion.
OPPORTUNITY ASSESSMENT:
As we know games are a healthy activity for people
also like to play games in their idle time. So we can
take the benefit of that opportunity by opening a
Gaming Zone in our city. This opportunity can give us
healthy profits and can prove beneficial for us as a
long run business.
RISK AND RETURNS OF OPPORTUNITY:
RISK:
We will have to build a building to open Gaming Zone in Multan. But
•After conducting survey in Multan we found that more than 70% people are willing to have a Gaming Zone here.
•Someone else takes initiative for opening gaming zone before us and take advantage of opportunity is also a risk for us.
•Another risk we are considering is availability of finance.
•In this modern world, the technology is rapidly changing because of that the risk of existing technology becoming outdated is constantly there.
•Risk of new competitors is always there.
RETURNS:
We expect to receive return in following ways:
•We will be able to earn lot of profits because of our monopoly.
•We can earn by organizing events in our gaming zone.
•Gaming Zone is a passion for us. So internal satisfaction is the highest return for us.
PEST ANALYSIS
1: POLITICAL CONDITION:
For the starting of any business, the investor should analysis the political
condition of specific country. If the policies of Govt. are stable then it is
favorable for business. The tax rate is reasonable, provide rebate in
excise duty, security to wealth, no chances of war, no tight rules and
regulation then a business will efficiently operate in the country. But
unfortunately in Pakistan the political condition is not good so we have
threat from the increase rate of tax and insecurity. And also there is no
peace in Pakistan.
The YFL will play its minor role in the improvement of economic
conditions. This new business will provide the employment
opportunities to the people of Multan. In this way the
unemployment rate will reduce in this area. Government will get the
taxes as a result of business not only from our business but also
from the other sectors connected with us. Per captia income of
employees will increase and as a result of these the lifestyle of
city’s people also increases.
2:ECONOMIC CONDITION:
These days guys and girls both love to play games especially online multiplayer
games. Gone are the days of playing arcade games on computer – now it’s the
online networking games’ culture. But to enjoy all these games not everyone has
broadband connection at home. So, teens turn to gaming zones, the breeding
place of future pro-gamers. Gaming zone is like a paradise for teens. Dimly light
room filled with neon lights is what teens love. Trance background music and
soothing environment, a dream place to enjoy free time. People want places
where they can enjoy and release their mind from tensions of daily work load.
Social condition is favorable for our business. Our business will also take the
Ethical Rules into the considerations.
3:SOCIAL CONDITION:
4:TECHNOLOGICAL CONDITIONS:
Due to the introducing of new technology in games, our business has consistent
threat from changes in technology. It also increases the cost of our business. For
new technology understanding we need skilled and trained persons who are the
expert in IT field. Games companies are introducing new games with good
stories, action, graphics, 3D effects and lot more every day. IN Pakistan
technology is introduced step by step. The technological conditions are becoming
favorable for the business of gaming zone. So we should hold up to date
technology for providing good and quality services. Because the people are well
aware from new technology. The technology which we have for our YFL is
computers, LCD’s, video games etc.
COMPETITOR ANALYSIS:
DIRECT COMPETITORS:
As we are starting YFL in Multan and there is no such type of
Gaming Zone for youth in this area. So we don’t think we have
any direct competitor in that location where our business exists.
But Outside the city there are few shops of games containing:•Snooker
•Hand ball
•Tennis Table
As our target market is youth. So we can treat then as our direct competitors because these are attracting the attention of youth.
INDIRECT COMPETITORS:
YFL also have some indirect competitor which are given below:
•Parks
•Joy land
Refreshment Point
MARKET SEGMENTATION:
We can decide to select the IT industry for the staring of our new venture .We start the
new YFL in Multan. We will divide our market into small groups on the base of our
targeted customer’s characteristics.
GEOGRAPHIC:
Our targeted customers are of different cities of Pakistan, These cities are
Muzaffargrah,
Vehari,
Khanewal, and so on……..
DEMOGRAPHIC:
Our target customers are youngsters with the age of 15 to 35. There is no
gender differentiation
We will also divide our targeted market into small segment on the base of buying
situation. Our customers prefer which product or service’s features most and like to
buy that product or services. The usage rate of (how many time product or services
customers buy). There is no more awareness of games in Pakistan so we should use
those promotional tools which create awareness about games in people. Our target
location where we start our business is Multan.
TARGET MARKET:
“A group of people for whom the marketer designs the marketing mix is
called the target market. Our target market is Children, youth Adults and
anyone who is interested in games. We will Target (2, 75,000) people per
year.
MARKETING PLAN:
SITUATION ANALYSIS BACK GROUND OF VENTURE:
We are the student of AU as such we have no back ground in business
field and no experience in this field but as a student of business
administration we identify the business opportunity in Multan for gaming
zone.
All partners of this business are educated and have degree of MBA.
Zohaib Ahmed Arshad HayatBilal LeghariAli Raza
Strengths:Monopoly in Gaming Zone in Multan.
Big Target market.
New Computer Games
Good Location
Interest of teenagers in GamesEasy Promotion
Lower Cost than comparable Competitors
Weaknesses:
Small Place of Business
Lack of technical how know
Lack of skilled and trained employees
Access to Resources
Expensive Games and Hardware
OPPORTUNITY
Expansion of BusinessAdding Conference Room
Adding fast food or mini mart in Gaming zone
A new emerging or developing market(niche product, place, less competition)
New Technology
Increasing the purchasing power of customer.
Threats:
Lack of energy resources
Rapidly changes in technology
New competition in the market, possibly with new products or services
Availability of resources
Change in Political and Economic condition
Taxation
Market OBJECTIVES
To increase the salesTo increase the profit marginTo reduce the cost of servicesTo charge reasonable prices which is affordable for all people.To use no distribution channels, directly deal to our customersTo establish customers service center for improving our services qualityTo use such type of cheap promotional tools which is promote our product’s on wide areasTo maintain and increase the brand image
After defining the marketing objectives and goals now we make market
strategies and action programs to achieve these goals. These decision
effects marketing mix of our business.
MARKETING MIX:
It is a combination of 4p’s. Product, price, place, promotion and
other marketing activities needed to meet marketing objectives.
We design marketing mix plan for the marketing of our business
gaming zone.
MARKETING MIX FOR GAMING ZONE
PRODUCT:
The products which we offer in our business are following:•Table tennis
•Hand ball
•Snooker
•Computer games
•Shooting
•3D Computer games
And so many others games
PRICE:
Price is a component of an exchange or transaction that takes place
between two parties and refers to what must be given up by one party (i.e.,
buyer) in order to obtain something offered by another party (i.e., seller). We will charge fee according to game.
PRICING STRATEGY
The pricing strategy which we will use according to the
research and data gathered and the situation prevailing
in our target market is value based pricing strategy.
PLACE:We started our business in Shershah near Bily-Da-Dera(Multan). It is
access able for all people easily in free time. Our all products or
services are available in gaming zone.
The distribution channel which we select for our gaming zone services
is one level channel distributions involve company and consumers.
PROMOTION:
After starting business and providing our product or
services in the market and getting place in the market
our next step is to promote our product through thick
or thin. In order to get high market share and loyalty
of customers. We use two types of advertisements in
order to promote our services
Print MediaElectronic media Other Sources
PROMOTIONAL TOOLS
PamphletRadio
Official page on Facebook
Banners
Press media
Electronic Media
Social Media
BUDGETS:This is our advertising budget. We use two types of media. The allocation of cost is as follow:
MEDIA OBJECTIVES 1ST YEAR 2ND YEAR AMOUNT
ELECTRONIC
MEDIA50% 35% 15% 25000
PRINT MEDIA 10% 10% 0% 10000
OTHER
SOURCES60% 50% 10% 15000
ORGANIZATIONAL PLAN:LEGAL FORM OF BUSINESS:
Our business is partnership of four partners. The partnership is Limited
Liability Partnership (LLP), it is controlled by Partnership Act 1932 0f
Pakistan. According to this act LLC has following features,
One or more partners are with limited liability
The firm must be registered
The capital of limited partner is not returned to him till he remains a partner in the firm
There is at least one partner with unlimited liability
The limited partner can inspect the book of firm any timeA new partner can be admitted to the partnership firm without the consent of limited partners.
OWNERSHIP
Arshad Hayat ( General Manager)
Bilal Leghari ( Manager of Computer games)
Ali Raza ( Manager of mutual games)
Zohaib Ahmed( Manager of Marketing & Account)
LIABILITY OF OWNEROur partnership is limited liability partnership (LLP). According to limited liability partnership our partners are liable only that part which they contribute in business. Their personal property is not liable.
COSTS OF STARTING A BUSINESS:
Registration of firm name in industry
Need license for using technology
Agreement with legal advisor
Partnership deed for the conveying responsibilities, rights and duties of partners
CAPITAL REQUIRMENT
Banks loan
Additional capital contributed to each partner
New partnership agreement
DISTRIBUTION OF PROFIT AND LOSS
50, 50 profit/loss margin
On the contributed part of capital
On the base of skills (may be not contribute capital but his skills are very beneficial for the firm)
OPERATIONAL PLAN:The operational plan includes all processes, activities and
operations that are necessary to run a business. The operational plan of our Gaming Zone Business includes the following activates.
PURCHASING:We first of all have to purchase the following assets for the
operations of our business from different suppliers.
STAFF FOR OPERATIONS OF BUSINESS
One of us will be General Manager.
One in the computer games area.
One of us check Accounts.
One will see the snooker, hand ball and shooting game and other games.
PRODUCTION PLAN:
SERVICE CREATION:•This means that how we can produce services and how we will deliver the services to our customers in business.
SNOOKER:TABLE TENNIS:CAROM, CHESS, PUZZLE AND MONOPOLYCOMPUTER & PLAYSTATION WITH 3D GAMES:GUN SHOOTING:HAND BALL:OTHER GAMES
BreakevenIn the end of 1st years we are taken breakeven. It means no profit and no
loss. But the land which we are taking on lease payment its breakeven occur after 10 years according to our lease payment per month.
FINANCIAL PLAN:
SOURCES AND USES OF FUNDS
The ratio of the partners is as follow:
Partners Contribution Ratio 25%
Our total capital will be Rs. 57,875,774 out of this capital the partners will
contribute round about 15,000,000 and the remains will be raised from
financial institutes like: smeda, and banks etc.
Capital to be Brought in by Partners = Rs. 57,875,774Borrowed Amount (Loan) = Rs. 15,000,000Total Initial Investment Rs. 72,875,774
KEY ASSUMPTIONS
Revenue is Increased @ 20% per YearCost of Services is Increased @ 15% per Year
Salaries are Increased @ 5% each Year
Repair and Maintenance Expenses are Increased @ 20% each Year
Fuel and Utilities Expenses are Increased @ 10% per year
Retained Earnings are 75% of the Net Income
Interest Rate on Loan is 14%
Rental value of tender increased annually by 10%.Other assumptions are further mention in the notes to these projected financial statements.
YOUTH FUN LAND INCOME STATMENT FOR THE YEAR ENDED
DISCRIPTION RS.NET REVENUE 31,656,800
Salaries 1852,000Stationary Expense 1,000Rent Expense 1200,000Marketing and Promotion 16,000Repairs and Maintenance 250,000Electricity Expense 500,000Phone and Internet 96,000Misc Utilities 50,000Depreciation Expense 195100Total Expenses 3760100OPERATING PROFIT 2136700EBIT 22936700Interest on Loan Expense 1400000Profit before Tax 21536700Tax (5%) of N.I 2153670NET INCOME 19383030
Retained Earnings 75% OF N.I 14537273
YOUTH FUN LAND BALANCE SHEET AT THE YEAR ENDED 2014 .
ASSETS RS
FIXED ASSETS
Snooker 100,000
Carom 2000
Computers 5,00,000
Swimming 1,00,000
Hockey 62,500
Play Stations 62,500
Basket Ball 30,000
LCD’s 250,000
Valley Ball 30,000
Sound System 50,000
Furniture & Fixture 300,000
Projectors 50,000
Archery 10,000
Office Equipment 10,000
Security Cameras 15,000
Badminton 15.000
A.C.s 100,000
Generator 200,000
Lights fans And Décor 50,000
Table Tennis 25,000
Shooting Gun 25,000
NET FIXED ASSETS 19,87,000
CURRENT ASSET
Cash in Hand 3,00,000
Cash at Bank 5,10,000
TOTAL CURRENT ASSETS 8,10,000
TOTAL 27,970,000
LIABILITIES RS.
Loan 15,000,000
Profit Payable to Partners 200,000
TOTAL LIABILITIES 15,200,000
EQUITY
Capital 57,875,774
Retained Earnings 14,537,273
TOTAL 72413047
NOTES:
NOTE # 1
TOTAL ANNUAL REVENUE
Year 1 (Rs)
Total Annual Revenue from Games 31,656,800
TOTAL REVENUE 31,656,800
It is assumed that:
There are 360 working days in a Year
NOTE # 2
SALARY:
Year 1DESIGNATION SALARY/MONTH
(RS.)RS
General Manager 30,000 360,,000Manager Operations (Computer Games ) 23,000 276,000Manager Marketing & Promotions 23,000 276,000Manager Operations (Manual Games) 23,000 276,000IT Specialist 20,000 240,000Sweeper 3,000 36,000Sweeper 3,000 36,000Office Peon 3,334 40,000Office Peon 3,334 40,000Office Peon 3,334 40,000Security Guard 8,000 96,000Security Guard 8,000 96,000
Total 154334 1,852,000
Note # 3
TENDER LEASE MONTHLY:The building is acquired on lease and as per agreement the monthly lease payment for the building is Rs. 480000 for the first 10 years. The lease payment for the First year is to be paid in advance
Monthly Lease = Rs. 480000Annual Lease = Rs. 480000 x
12 = Rs.5760000
Annual Cost
Rs
Banner (Flex) 25,000
Brochures 10,000
Other Sources 15,000
Total 50,000
NOTE # 4MARKETING AND PROMOTIONS:
ASSETS COST RESIDUAL VALUE
BOOK VALUE
DEPRECIATION RATE%
ANNUAL DEP
Snooker 100,000 20,000 80000 15 12000
Carom 2000 500 1500 10 150
Computers
500,000 75000 425000 10 42,500
Play Stations
62,500 15000 55000 15 8,200
LCD’s 250,000 30000 220000 10 22,000
Sound System
50,000 5000 45000 15 6,750
Furniture & Fixture
300,000 50000 250000 15 37,500
NOTE # 5DEPRECIATION
Furniture & Fixture
300,000 50000 250000 15 37,500
Projectors 50,000 10000 35000 10 3,500
Basket Ball 30,000 10000 20000 10 2,000
Office Equipment
10,000 500 9500 10 950
Weightlifting
30,000 10000 20000 15 3000
Security Cameras
15,000 2000 13000 10 1300
A.C.s 100,000 20000 80000 15 12,000
Hockey 62,500 15000 50000 15 7,500
Generator 200,000 40000 160000 15 24000
Lights fans And Décor
50,000 2000 48000 10 4,800
Badminton 15000 5000 10000 15 1500
Table Tennis
25,000 3000 22000 10 2200
Shooting Gun
25,000 3000 22000 10 2200
Total 2087000 195100